Keeping the Winning Stocks

I define stocks that recovered from the March 2020 lows and reached new 52 week highs as "winning" stocks.   Not only did they rebound, but in some cases are 2-4 times more than the March 2020 lows.

In my case, I took the opportunity to sell many of the "winning" stocks I own not long after they reached their 52 week high.    For many of the stocks, that was too soon, since they often went significantly higher after I sold.     I generally kept the stocks that didn't rebound as much, often because they had a paper loss.   

In reviewing my results, I learned I would have been better off selling the under performing rebound stocks, and keeping the "winning" stocks.  I would have booked some gains from the bottom on the under performing stocks, although for a loss  However, the "winning" stocks would continue to rise, resulting great overall net gains for the portfolio.

Keep winners and sell under performers will be a strategy I plan to implement for future investment decisions.  It's always been tough for me to sell losing stocks, since there is chance they may recover.    But usually my losing stocks rarely recover and keeping going down.  So I will need to develop a system that allows me to execute this strategy despite my tendency to keep losing stocks longer than I should.

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This is not financial nor investing advice. Please consult a professional advisor.

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